Suppose that a severe freeze destroys a sizable portion of the lettuce crop.As a result:

Question

Quizplus · Accepted Answer

The severe freeze will reduce the supply of lettuce, leading to a decrease in quantity supplied. This will cause an increase in the equilibrium price since there will be less of the good available at the same demand level. The decrease in supply will also cause a decrease in quantity demanded since there will be less lettuce available for consumers to purchase. Therefore, option C, supply will decrease, equilibrium price will increase and quantity demanded will decrease, is the correct answer.

Suppose That a Severe Freeze Destroys a Sizable Portion of the Lettuce